Hedge fund management firm One River Asset Management has filed an application with the U.S. Securities and Exchange Commission to launch a Bitcoin exchange-traded fund with a green spin.
It is seeking to offset Bitcoin's carbon footprint by purchasing carbon credits that will equal the estimated CO2 emissions linked to the trust, a first for any proposed trust that offers direct exposure to Bitcoin.
According to the prospectus, One River will buy Ethereum-based MCO2 crypto tokens from environmental platform MOSS.Earth. Each token represents one ton of reduced CO2 emission:
Tokenized carbon credits are fungible and do not represent a claim on a specific underlying carbon credit issued to a specific carbon reduction project. The Trust will initially acquire MCO2 tokens from Moss from time to time at pre-negotiated prices in an amount sufficient to offset the estimated carbon footprint of the bitcoins held in the Trust's portfolio, with a view towards tracking the performance of the Index.
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If approved, the shares of the ETF will trade on the New York Stock Exchange.
The company hired former SEC chairman Jay Clayton as a cryptocurrency advisor back in March.
One River Digital, the hedge fund's crypto arm, is heavily invested in Bitcoin and Ethereum.
The U.S. SEC is yet to greenlight a single ETF proposal, with multiple giants of the likes of Fidelity and VanEck vying to be the first to launch the much-anticipated product.
Vladislav Sopov
Dan Burgin